Accounting Equation

Which one from the list below doesn't represent the Accounting equation?

• A = OE + L

• A - L = OE

• A - OE = L

• OE = A + L

How will you calculate profit?

• Income - Expenses

• Income + Expenses

• Income x Expenses

• Capital - Expenses

Which word in a transaction won't define the transaction to be a drawing?

• Private

• Capital

• Owner

• Personal

Profit is the amount of money left over after all expensenses have been paid.

• True

• False

Assets can be seen as

• Possessions that are used to run a business.

• Expenses for the business

• Items the business received from the owner

How many account groups will affect owners equity?

• 1

• 2

• 3

• 4

The full formula to calculate owners equity is, Capital + Income - Expenses - Drawings

• True

• Fales

When the business receives a loan of R10 000 what will happen to bank?

• No effect on bank

• Bank will increase

• Bank will decrease

What will happen to liabilities when a business takes out a loan?

• Loans will increase

• No effect

• Loans will decrease

When the owner contributes capital in the form of a direct EFT, Capital and which other account will be affected and how?

• Bank will increase

• Bank will decrease

• Capital will increase

• Capital will decrease